U.S. Attorney Ron Parsons and South Dakota Attorney General Marty Jackley announced new coordinated efforts to combat government fraud during a joint press conference Thursday in Sioux Falls.
The two offices emphasized a shared commitment to protecting taxpayer dollars, ensuring public funds reach intended recipients, and prosecuting individuals who defraud state, federal, or tribal programs. Officials said collaboration between federal, state, and local agencies—along with tips from employees and citizens—remains critical to identifying and stopping fraud.
“Fraud is not a mistake. It is not a technicality. It is not just ‘gaming the system.’ And it is not victimless. It is stealing,” Parsons said. “Those who steal from the American taxpayer will be held accountable.”
Jackley echoed that message, underscoring the importance of transparency and accountability in government. “South Dakotans deserve a state government that is transparent and free from corruption,” he said. “I have and will hold offenders accountable.”
Officials pointed to data from the Government Accountability Office showing the federal government loses an estimated $233 billion to $521 billion annually to fraud, accounting for up to 7% of total federal spending. Improper payments have totaled roughly $2.8 trillion since 2003, including $162 billion reported across 68 programs in fiscal year 2024 alone.
The press conference also highlighted the success of coordinated enforcement efforts, including a multi-agency crackdown on benefit fraud in Minnesota that led to charges against 98 defendants and dozens of convictions. Federal officials said a new Department of Justice Fraud Enforcement Division—led by Colin McDonald—will expand similar efforts nationwide.
At the state level, Jackley outlined several South Dakota initiatives aimed at strengthening oversight. The state’s Public Integrity Unit, created through legislation signed by Gov. Larry Rhoden, has already received dozens of reports in its first year, leading to multiple investigations and criminal charges.
Additional programs targeting fraud include Medicaid Fraud, Abuse and Neglect Services, which recovered more than $940,000 in 2025, and the Cooperative Disability Investigations program, which generated millions in savings through fraud detection and prevention.
“We will not tolerate fraud that steals from taxpayers,” Jackley said. “Every dollar recovered is a dollar returned to the public.”